A factor of production with unique attributes is able to command a scarcity rent determined by market demand.

Question

Quizplus · Accepted Answer

A factor of production with unique attributes (such as land with a specific location or a rare mineral) can command a scarcity rent because its supply is limited, and if there is high demand for it, the price (or rent) will increase accordingly. This concept is rooted in the economic principles of supply and demand.

A Factor of Production with Unique Attributes Is Able to Command